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Reasons EFCA Must Fail No. 9: Have You SEEN the Unemployment Rate Lately?

WASHINGTON, D.C. | August 18, 2009

Ever hear the phrase, “making a bad situation worse”?

That’s exactly what would happen to our economy – which, unfortunately, is in a “bad situation” at the moment – if some in Congress and their special interest allies get their way with enactment of the so-called Employee Free Choice Act.

A report issued in March found the act would destroy jobs and stifle productivity at a time when our economy needs both. And it’s not a numbers game, either. The report, written by Dr. Anne Layne-Farrar of the non-partisan firm LECG Consulting, is based on Canada’s economic experiences with card check and binding arbitration policies similar to those in EFCA.

What she found was a dark glimpse into the future if the act becomes law:

“[T]he unintended consequences of passing EFCA are likely to be significant. Increased unemployment and reduced labor supply are very high prices to pay during any time, but especially during a recession.”

As Dr. Layne-Farrar concludes, there could not be a worse time to support such a proposal. About 247,000 Americans lost their jobs last month, according to the Labor Department. That brings the job loss totals to 6.7 million since the recession began, and the total number of Americans out of work to 14.5 million. It’s just another reason why EFCA must fail.